Euro vulnerable to oil rise: Trichet

European Central Bank President Jean- Claude Trichet said the surge in oil costs has increased risks to economic growth in the 12 countries sharing the euro. He backed away from a forecast that expansion will accelerate next year.

Growth in the euro region averaged an annual 2.1% over the past four quarters and “will continue at that pace” he said. The ECB last month predicted growth of about 1.9% this year and 2.3% next.